Charitable Donation Tax Warning for Moneytalk Listeners

Last Sunday Bob Brinker discussed how you may possibly lower your taxes with charitable giving from your IRA.  This is really good advice to consider this as RMDs (Required Minimum Distributions) from IRAs are taxed as ordinary income which can push you into higher tax brackets and reduce Social Security and Medicare benefits. 

From Boca_Pete on SiliconInvestor at 12/15/2013 5:57:28 PM

On today's Moneytalk Program in the 2nd hour, Brinker discussed the available opportunity for those over 70-1/2 yrs old to get a charitable donation deducted from one's taxable received "required minimum distributions" from one's pre-tax IRA savings, BUT BRINKER FAILED TO MENTION THE MOST IMPORTANT THING YOU HAVE TO DO to accomplish this objective

- THE FINANCIAL INSTITUTION HOLDING one's PRE-TAX IRA ACCOUNT, MUST pay one's chosen charities directly - THEY MUST CUT A SEPARATE CHECK PAYABLE TO EACH OF YOUR CHOSEN CHARITIES!

- Such taxpayers then get to exclude from taxable income (from "Adjusted Gross Income" also) the total of such directly made donations making them not subject to income taxation.

IF THE TAXPAYER IS ON THE CUSP OF A TAX BRACKET INCREASE; such reductions to taxable income (and AGI) could have some or all of the following impacts on the taxpayer:

- Could lower means tested Part-B Medicare Premiums deducted from received monthly Social Security checks.

- Could cause avoidance of the additional 3.8% surtax on investment income.

- Could lower the tax bracket for figuring income tax liability on taxable income.

HOW DO I KNOW ALL ABOUT THIS? I just personally went through the process with Brinker's favorite mutual fund family in Valley Forge, PA! While they have forms for this stuff, they'll do it all over the telephone if you have your list of chosen charities and related donation amounts ready to communicate. You get their prepared checks in the mail for photcopying and mailing in with each charity's donation forms.

I wonder how many listeners will now act on Brinker's misleading incomplete radio advice by writing their own personal checks to charities, instead of getting their mutual funds or other financial institutions to pay such charities directly as required by the IRS laws??

THE MOTTO FOR HEARING TAX ADVISE ON THE RADIO = MISTRUST and VERIFY!

Ah but Bob sure does those radio voice inflextions well, doesn't he!

Best wishes for a Merry Christmas and HAPpy New Years,

P

Support Clinton Bush Haiti Fund

Please Support the Earthquake Recovery in Haiti through the Clinton Bush Haiti Fund.

www.clintonbushhaitifund.org

I verified this web site is recommended by official website such as whitehouse.gov so I used it to give.

On January 12, a magnitude 7.0 earthquake struck Haiti just outside the capital city of Port-au-Prince. The devastation – in lives lost, property destroyed, and families displaced – is immense.

At the request of President Obama, we are partnering to help the Haitian people reclaim their country and rebuild their lives.

Our immediate priority is to save lives. The critical needs in Haiti are great, but they are also simple: food, water, shelter, and first-aid supplies. The best way concerned citizens can help is to donate funds that will go directly to supplying these material needs.

Through the Clinton Bush Haiti Fund, we will work to provide immediate relief and long-term support to earthquake survivors. We will channel the collective goodwill around the globe to help the people of Haiti rebuild their cities, their neighborhoods, and their families.

We ask each of you to give what you can to help ensure the people of Haiti can build back stronger and better than ever.

Both of us have personally witnessed the tremendous generosity and goodwill of the American people and of our friends around the world to help in times of great need. There is no greater rallying cry for our common humanity than witnessing our neighbors in distress. And, like any good neighbor, we have an obligation and desire to come to their aid.

Thank you for taking the time to visit, and we hope you will donate to this worthwhile cause. The people of Haiti now need our assistance more than ever.

President William J. Clinton
President George W. Bush

To contribute, visit the secure online donation page or mail a check to:

The Clinton Bush Haiti Fund
c/o William J. Clinton Foundation
Donations Department
610 President Clinton Avenue
Little Rock, AR 72201

OR

The Clinton Bush Haiti Fund
c/o Communities Foundation of Texas
5500 Caruth Haven Lane
Dallas, TX 75225

For additional information please see The Clinton Bush Haiti Fund FAQs.

Many of us in the Bay Area remember well our own 7.1 magnitude Loma Prieta earthquake from 1989. I was lucky to be in on the second floor of my well constructed Sunnyvale town house during that quake waiting to watch the Bay Bridge World Series. (I moved to a single floor house after that... all things being equal, why press my luck?) By winning the genetic lottery, I was lucky to be in a well constructed building where all I had to do was hold up my bookshelves that wanted to fall over onto my bed. These people in Haiti are so poor their government buildings and homes have collapsed. They need our help. I've heard over 100,000 may have died. President Bush said they need money and he and President Clinton will make sure it is well spent.

More information on

• 1989 Loma Prieta earthquake
  
  
• Google Maps of Port-au-Prince Haiti
  

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